April 4, 2000

(Washington, D.C.) Today, the U.S. House of Representatives approved legislation to phase out the federal estate, gift, and generation-skipping transfer tax over the next 10 years. The Death Tax Elimination Act of 2001, co-sponsored by Congressman Jim McCrery (R-LA), Chairman of the Ways & Means Subcommittee on Select Revenue Measures, will provide $192 billion over 10 years in tax relief.

"Death and taxes may be inevitable, but the tax on death should not be. The estate tax is perhaps the most oppressive provision of the Internal Revenue Code because it taxes small business owners, farmers, and families twice. Individuals pay income, capital gains, and other taxes throughout their lives, then the federal government taxes the value of their property again at the time of death. This double-dipping makes it nearly impossible for parents to pass family owned businesses and farms onto their children," said McCrery.

According to the National Federation of Independent Business, more than 70% of family businesses do not survive the second generation and 87% do not make it to the third generation. Sixty percent of small-business owners report that they would create new jobs over the coming year if estate taxes were eliminated.

"With bipartisan support, the House of Representatives took a positive step toward lifting this unfair burden from family farms and small businesses. It is my hope the U.S. Senate will follow the House’s lead and act on this legislation soon, so it can be sent to President Bush’s desk as quickly as possible," said McCrery.